CardBASE Technologies under protection of the court

CardBASE Technologies has come under court protection in its bid to pay off loans while still trading.

The Examiner, Mr Jason Sheehy, is putting proposals for a scheme of arrangement to a meeting to be held on 22nd November 2001, involving both members and creditors.

In effect the Examiner is seeking approval to cancel all ordinary share capital, redeem cumulative redeemable performance shares at a rate of IEP 0.01p for each IEP 1.00, and to waive all shareholders’ rights, actual and contingent.

Likewise creditors are being asked to write down their debt by 80% - 90%, with all secured creditors and preferential creditors being paid the remaining amounts owed in instalments.

The only creditor to be paid in full will be The Bank of Ireland, who is owed in excess of £1m, with secured loan note holders [owed some £6.6m] to be paid 40%.

The next deficiency in the company is around £1.1m, based largely on creditors due within one year of £11.1m, less current assets of £1.3m and fixed and tangible assets of £9.0m.

The latter is largely based on a valuation of the intangible software assets at £8.25m.

The aim of the scheme of arrangement is to allow the company to continue trading, with investors putting in sufficient funds to allow it to meet its obligations under the scheme of arrangement.

However existing members and creditors, other than The Bank of Ireland, are unlikely to be happy with the proposals, which have to be approved at the meeting and ultimately approved by the court.